BOJ Back-to-Back Hike Looms: Historic Move for Japan's Economy

The Bank of Japan (BOJ) may be gearing up for another interest rate hike, according to Rabobank's research team. This would be a historic move, marking the first back-to-back hike since the late Cold War era in 1989-90 and the first monthly back-to-back since March 1980 when rates reached 9.0%. Former BOJ director Momma sees another 25 basis point hike as 'a real possibility', albeit at just 20-30%.

The initial hike left the Japanese Yen hanging, and a second increase could potentially pressure the Yen carry trade. The BOJ waits until the end of October to make its next move, but Momma's prediction suggests that another rate hike is on the horizon.